Malaysia’s Social Media License Clashes with Tech Giants

Google, Meta, and X have asked to pause the Malaysia social media license that would mandate social media service to obtain a license.

The Asia Internet Coalition which represents big tech firms like Google, Meta, and X, has raised concerns about the lack of clarity in the Malaysian decision and how it can affect innovation, urging the Malaysian government to pause the license plan.

License Plan faces Criticism

In Malaysia, social media platforms with over eight million users are requested to secure a license by early 2025, the goal behind the Malaysia social media license is to limit cybercrime in the country.

The Asia Internet Coalition published a letter on its website criticizing the license and claimed that it is “unworkable” and argued that the regulations can affect negatively the innovation of technology.

The AIC also added that the Malaysia social media license lacks clarity and have not gone through formal public consultation which has raised concerns that platforms will struggle to comply with the new regulations. “No platform can be expected to register under these conditions,” said Jeff Paine, managing director of the AIC.

The Malaysian government still did not comment on the criticism made by the AIC, however, not all tech companies that fall under the AIC, approved of its statement against the Malaysia social media license.

Grab, a member of the coalition took a separate statement from the AIC and claimed that the new regulations would not impact its operations. This controversy shows the varied perspectives within the industry regarding the proposed Malaysia social media license.

Regulatory Impact on Tech Companies

The Asia Internet Coalition expressed its worry that the Malaysia social media license might hinder Malaysia’s growing digital economy after achieving significant investments this year.  Despite the concern that the Asia Internet Coalition is addressing, the increase in harmful content on social platforms is pushing the Malaysian communications regulator to take actions for stricter regulations.

Earlier this year, the Malaysian government requested from Meta and TikTok to improve their content monitoring efforts. While the Asia Internet Coalition prioritize tackling online harms is crucial, it believes that the Malaysia social media license requirements could make it harder for big social media companies to comply and there is possibility that Malaysia’s digital sector face problems because of it.

Final Thoughts

Despite the criticism, the Malaysian government remains focused on addressing online harmful content especially after insights indicated an increase in harmful content, highlighting a far more complicated link between innovation and regulations.

The tech industry’s decision will be crucial in shaping the future of digital regulations in Malaysia.

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